Contract Lifecycle Management Software Statistics 2024


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In today’s fast-paced business environment, understanding the intricacies of contract lifecycle management (CLM) software is more critical than ever. The year 2024 stands poised to witness transformative changes fueled by advancements in CLM solutions, which streamline processes from contract creation through execution and renewal. Recognizing the significance of these trends is fundamental to grasping how businesses can optimize efficiencies, mitigate risks, and drive sustainable growth.

Key stakeholders—including corporate executives, procurement officers, legal professionals, and IT managers—will find immense value in the latest data on CLM software. These insights not only inform strategic planning but also influence operational improvements and regulatory compliance. For industries grappling with complex contract portfolios, understanding the evolving landscape of CLM software is instrumental in maintaining a competitive edge and ensuring robust governance.

As the CLM software market evolves rapidly, leveraging these data-driven insights can sharpen decision-making and formulate agile strategies. By delving into the specifics of 2024’s CLM trends, businesses can navigate the challenges and opportunities ahead with confidence, ensuring they remain at the forefront of their respective industries. Join us as we explore the pivotal statistics shaping the future of contract lifecycle management, empowering your organization with the knowledge to thrive.

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Top Contract Lifecycle Management Software Statistics 2024

☰ Use “CTRL+F” to quickly find Contract Lifecycle Management Software facts. There are total 105 Contract Lifecycle Management Software Statistics on this page 🙂

Adoption And Trends

  • Adopting CLM practices became a trend in 2018 and continues to grow post-pandemic. [?]
  • In 2024, businesses will prioritize contract efficiency, increasing pressure for teams to do more with less. [9]
  • By 2025, every organization will adopt CLM as their central source of truth for all contracts. [6]
  • By 2024, businesses are expected to have fully integrated CLM systems into their workflows, enabling real-time collaboration. [15]
  • As of October 29, 2020, 29 states have legalized Remote Online Notarization (RON), compared to just 3 states in 2018. [1]
  • In 2023, businesses will experiment with AI and automation technologies to streamline contract management processes. [12]
  • By 2024, AI-powered contract analytics will eliminate the manual contract review process. [12]
  • In 2024, CLM software will more aggressively harness the power of Artificial Intelligence (AI) and machine learning. [15]
  • By 2024, over 90% of CLM software solutions aim to provide advanced encryption and multi-factor authentication. [15]
  • By 2024, manual efforts for reviewing and drafting contracts will be reduced by 50%. [10]
  • By 2025, the contract management software market will hit $6.5 billion. [14]
  • By 2025, a significant increase in the budget for legal technology is anticipated. [31]
  • The rise of generative artificial intelligence (GenAI) in CLM systems is expected to continue in 2024. [5]
  • By 2024, the contract lifecycle management software market is projected to grow at a CAGR of 17%, reaching nearly USD 9.84 billion by 2032. [8]

Cost And Financial Impact

  • The average cost of a simple contract is $6,900. [1]
  • Poor contract management practices cost organizations an average of 9% in annual revenue. [1]
  • Ineffective contract management causes $270 billion in economic value to be destroyed every year. [22]
  • Mismanagement of contracts leads to a yearly loss of $140 billion due to lack of collaboration between commercial and legal teams. [22]
  • The cost of manually creating and managing a contract can range from $6,900 to $49,000. [17]
  • On average, companies spend $2.5 to $3.5 million searching for lost documents or recreating them. [10]
  • Improved contract management could boost a company’s annual revenue by approximately 9%. [19]
  • A business can save up to 2% of its annual cost by utilizing contract management. [10]
  • Automating contract management can cut negotiation cycles by 50% and reduce inaccurate payments by 75% to 90%. [10]
  • Contract lifecycle management software can reduce the contract lifecycle time by half, administrative overhead by 25%-30%, and improve compliances by 55%. [10]
  • Forrester estimates a 356% return on investment for typical DocuSign CLM customers over three years. [13]
  • Contract automation can reduce the average contract cycle time by up to 50%. [26]

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Legal And Compliance

  • 46 cents out of every $1 spent on legal services goes on external costs. [1]
  • 37% of companies spent more than $750k on legal technology in 2018. [1]
  • $1 million is the average legal technology spend for mid-size companies with in-house engineering resources in 2018. [1]
  • Automating contract management has saved lawyers 82% of their time. [1]
  • 80.8% of in-house lawyers participated in contract management by reviewing and drafting documents in 2019. [1]
  • Only 1.2% of administrative personnel participated in contract management in 2019. [1]
  • 79% of legal research and 90% of records management is done by lawyers. [1]
  • Only 12% of surveyed legal departments use AI tools in their processes. [1]
  • 43% of legal departments are exploring AI to reduce workload, gain insight, or improve performance. [1]
  • 62% of organizations have experienced a critical risk event in the past three years. [1]
  • Less than three-quarters (69%) of organizations leverage technology to support their compliance initiatives. [1]
  • 87% of organizations see tech risk management as a siloed, reactive process. [1]
  • 57% of organizations don’t keep an inventory of all third parties with which they share sensitive information. [1]
  • 57% of organizations aren’t confident that their vendor management policies would prevent a data breach. [1]
  • By 2024, over 90% of CLM software solutions will provide advanced encryption and multi-factor authentication to safeguard sensitive contract data. [15]

Market Insights

  • The global contract lifecycle management software market size was valued at USD 4.7 billion in 2023 and is projected to reach USD 9.3 billion by 2030, growing at a CAGR of 8.4% during the forecast period 2024-2030. [2]
  • North America, followed by Europe, dominated the global contract management market in 2018 due to the availability of advanced CLM solutions. [16]
  • The healthcare sector accounted for 11.8% of the global contract management software market share in 2020. [10]
  • The overall value of the contract lifecycle management software market was approximately $1.86 billion in 2020. [10]
  • Forrester projects the contract management software market to be worth $12 billion by 2025. [10]
  • The contract lifecycle management software market size attained a value of USD 2.40 billion in 2023 and is expected to grow at a CAGR of 17% between 2024 and 2032 to reach almost USD 9.84 billion by 2032. [8]
  • The global contract lifecycle management market is projected to reach over $5 billion by the end of 2023. [35]

Efficiency And Productivity

  • 65% of legal practitioners say wasting time on administrative work is their main complaint. [10]
  • Reviewing and processing a simple contract can cost as much as $6,900 and take lawyers 92 minutes on average. [9]
  • The average time to complete a contract review and approval process is 42 days. [10]
  • 90% of contract professionals find it hard to find specific documents post-signature, and 49% of businesses lack a defined process for contract storage after execution. [9]
  • It takes 84 minutes to find and identify the relevant sections or language in a contract on average. [9]
  • Digitization of contract management offers the potential to improve compliance by 55%. [18]
  • Implementation of CLM can reduce contract review times by 90%, processing thousands of contracts within hours. [15]
  • 78% of best-in-class companies have their contracts in a searchable, central repository. [18]
  • The Journal of Contract Management estimates that 71% of businesses can’t locate at least 10% of their contracts. [18]

Security And Risk Management

  • Only 18% of organizations leverage automated processes for IT risk data collection and reporting. [1]
  • Only 13% of organizations consistently use key risk indicators (KRIs) to understand and manage IT risk. [1]
  • 32% of organizations were victims of a major cyber attack in 2017. [1]
  • The average number of security breaches per organization each year is 130. [1]
  • 57% of organizations don’t keep an inventory of all the third parties with which they share sensitive information. [1]
  • Bank-level 256-bit encryption and TLS 1.2 protocols are standard for document automation tools. [1]
  • Only 27% of chief compliance officers strongly agree that their organizations’ compliance function has a change management process in place. [1]

Key Players And Solutions

  • The Agiloft Integration Hub connects KB to more than 200 enterprise integrations using Workato. [3]
  • ContractPodAi introduced Leah, a Generative AI Legal Services hub using OpenAI’s GPT-4. [8]
  • Key players in the contract lifecycle management software market include Concord Worldwide Inc., Deltek Inc., Conga, Ironclad, Inc., Icertis, Oracle Corporation, Contracts 365, Inc., Newgen Software Technologies, and others. [8]
  • Dock 365’s Contract Management System provides powerful and productive contract management, especially in the reporting and data analysis stage. [7]
  • Juro powers over 1 million contracts for companies like Remote, Deliveroo, Trustpilot, The RealReal, AngelList, and QuantumScape. [4]

Future Outlook And Predictions

  • By 2024, CLM solutions will be ready to use advanced technology like natural language processing (NLP) and machine learning techniques to extract terms and clauses from various sources. [15]
  • By 2032, the global contract lifecycle management software market is expected to be worth nearly USD 9.84 billion, growing at a CAGR of 17% between 2024 and 2032. [8]
  • The global contract lifecycle management market revenue is projected to grow by USD 2,582.3 million between 2023 and 2033, surpassing the growth of USD 344.9 million observed between 2018 and 2022. [31]
  • The market for contract lifecycle management software is expected to grow at a CAGR of 13.5% from 2020 to 2027. [25]

Technology And Integration

  • Integrating a standalone GenAI product on top of CLM systems is an approach organizations can adopt in 2024. [5]
  • By 2024, business functions will collaborate in real-time, authoring contracts, conducting reviews, and tracking changes seamlessly. [15]
  • Contract lifecycle management software offers integration with over 1,000 business systems for seamless interdepartmental collaboration. [19]

Challenges And Solutions

  • 53% of businesses consider inconsistency in contract management among their top operational risks. [25]
  • 44% of in-house lawyers say getting buy-in for process changes is one of their biggest challenges ahead of 2024. [23]
  • 84% of supply chain managers point to low contract visibility during the procurement process as their biggest challenge. [34]
  • 65% of teams aren’t using integrated tools to manage agreements. [27]
  • The Journal of Contract Management estimates that 71% of businesses can’t locate at least 10% of their contracts. [18]
  • Only 22% of companies are very confident in their ability to track and manage contracts. [22]

Key Metrics And Performance Indicators

  • The average organization’s contract renewal rate is approximately 72%. [25]
  • The average time to negotiate a first contract with a union is 465 days. [33]
  • Organizations can save up to 2% of their annual costs by utilizing contract management. [33]
  • 78% of good businesses have their contracts in a searchable place. [22]

Industry-specific Insights

  • The healthcare sector accounted for 11.8% of the global contract management software market share in 2020. [10]
  • Volkswagen established a partnership with Minespider and Icertis in April 2019 to launch a blockchain pilot. [32]
  • The contract management software market in the United States is valued at USD 2.3 billion by 2033. [20]
  • In 2022, North America contract lifecycle management market took the lead by bringing the bulk of revenue. [31]

Innovations And Developments

  • In June 2022, Agiloft made enhancements to its connected experience platform. [20]
  • In May 2022, Icertis launched an AI studio to make AI-powered contract intelligence accessible. [20]
  • In March 2022, Agiloft partnered with HBR Consulting to provide contract management services. [20]

Adoption Rates And Usage

  • By 2023, contract lifecycle management solutions will be used by 90% of multinational global firms. [11]
  • 65% of legal departments now utilize contract management software. [24]
  • 81% of customers surveyed in the Gartner 2020 Magic Quadrant for CLM said they bought CLM to create operational efficiencies. [30]
  • 85% of companies still rely on manual processes for contract management. [10]

Regional Insights

  • The contract lifecycle management software market in China is likely to be valued at USD 516.9 billion by 2033. [20]
  • The global contract lifecycle management market is projected to reach over $5 billion this year. [35]
  • The contract management software market in the United States is anticipated to expand at a 12.3% CAGR during the forecast period. [20]
  • The market in South Korea is approximated to climb at a CAGR of 14.2% from 2024 to 2034. [21]

Statistics And Reports

  • The global contract lifecycle management software market size reached US$ 2.1 Billion in 2023. [29]
  • The global contract lifecycle management software market is expected to exhibit a CAGR of 10.1% during 2024-2032. [29]
  • The global contract lifecycle management market size is likely to total US$ 3,771.7 million by 2033. [31]
  • The contract lifecycle management market size was USD 1.11 Billion in 2022 and is projected to reach USD 3.69 Billion by 2032. [28]

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Sources

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  2. verifiedmarketresearch – https://www.verifiedmarketresearch.com/product/contract-management-software-market/
  3. agiloft – https://community.agiloft.com/blogs/linda-frembes/2024/05/01/5-tips-for-maximizing-user-adoption-for-your-clm
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  5. contractpodai – https://contractpodai.com/news/contract-lifecycle-management-trends/
  6. Unknown URL – Unknown URL
  7. mydock365 – https://www.mydock365.com/stages-of-contract-lifecycle-management-8-reporting-data-analysis
  8. expertmarketresearch – https://www.expertmarketresearch.com/reports/contract-lifecycle-management-software-market
  9. juro – https://juro.com/learn/contract-efficiency
  10. cobblestonesoftware – https://www.cobblestonesoftware.com/blog/20-contract-management-statistics-clm
  11. speedlegal – https://speedlegal.io/post/5-upcoming-trends-in-clm-to-watch-out-for
  12. legalsupportworld – https://www.legalsupportworld.com/blog/emerging-trends-in-contract-management/
  13. docusign – https://www.docusign.com/blog/five-key-steps-to-successful-clm-implementation
  14. contractlogix – https://www.contractlogix.com/contract-management/contract-management-solution/
  15. smallbusinesscurrents – https://smallbusinesscurrents.com/2024/04/10/contract-management-trends-to-look-for-in-2024-and-beyond/
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  18. gatekeeperhq – https://www.gatekeeperhq.com/blog/the-benefits-of-contract-management-in-numbers
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  20. futuremarketinsights – https://www.futuremarketinsights.com/reports/contract-management-software-market
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  22. weshare – https://www.weshare.net/statistics/contract-management-statistics/
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  27. cloc – https://cloc.org/4-statistics-that-will-change-your-mind-about-contract-analytics-and-ai/
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  33. procurementtactics – https://procurementtactics.com/contract-management-statistics/
  34. docusign – https://www.docusign.com/en-gb/blog/what-is-contract-lifecycle-management
  35. zegal – https://zegal.com/blog/post/the-future-of-contract-management-top-trends-and-predictions-for-2023-and-beyond/

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